Econintersect: Japan has revised the estimated GDP for the firsrt quarter 2013 up to 1.0% quarter-over-quarter (4% anualized). This was higher than the 0.9% expected according to a Reuters poll. The revision was due primarily to a smaller decline in capital spending than previously reported. In reaction, the yen declined against the US dollar and the Nikkei index for stocks surged by 3% in Monday trading in Tokyo.
The strong GDP number is being taken as an indication that the monetary stimulus programs of the government are having an effect. Supporting this view is the doubling over the last year of the country’s current account surplus in April, also reported today (10 June 2013) at 750 billion yen ($7.5 billion). The trade deficit was not much changed; the improved current account came from increased investment returns from overseas.
Also encouraging was an increase in bank lending in May by 1.8% (year-over-year), the largest increase in almost four years.
Sources:
- Japan Q1 GDP growth revised up to 1.0 pc Q-o-Q (Reuters, The Economic Times, 10 June 2013)
- Japan current account surplus doubles; GDP revised up (Reuters, The Business Standard, 10 June 2013)
- Nikkei up more than 3% on weak yen, strong Q1 GDP (Reuters, The Economic Times, 10 June 2013)
